Memory chip stocks Micron, SanDisk, fall up to 7% after remarks by Seagate CEO
Shares of memory chip manufacturers Seagate, Micron, SanDisk, and Western Digital fell 5% to 7% on May 18, 2026, after Seagate CEO Dave Mosely warned that the company cannot meet AI-driven demand due to long production cycles. Mosely advised customers to plan purchases up to a year in advance, triggering investor concerns and pressuring the Nasdaq index down 0.5% for the second consecutive day.
Memory chip stocks faced a sharp correction on May 18, 2026, after Seagate CEO Dave Mosely raised concerns about meeting surging AI-related demand. Speaking at a JPMorgan conference, Mosely stated that expanding production capacity would take too long and slow growth, advising customers to plan purchases up to a year ahead for data centers. The sell-off began with Seagate’s shares dropping over 7%, followed by Micron (6%), SanDisk, and Western Digital (5-6%). Despite the decline, these stocks had surged 120% to 380% in 2026, with Seagate still up 140% year-to-date. Investors now question how long companies can sustain demand amid lengthy chip production cycles spanning multiple quarters. Mosely emphasized that Seagate can provide advance notice on future supply, allowing customers to schedule orders accordingly. His remarks triggered broader uncertainty in the tech sector, contributing to the Nasdaq’s 0.5% underperformance for the second day in a row. The correction reflects growing skepticism about the sustainability of memory chip rallies, particularly as AI-driven demand strains supply chains. Analysts will closely monitor whether production bottlenecks persist or ease in the coming months.
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